By Nqobile Dludla
JOHANNESBURG (Reuters) -Africa’s biggest telecoms operator MTN Group swung to a half-year profit, it said on Monday, as macroeconomic conditions, inflation and foreign exchange rates in key markets showed improved stability.
South Africa-headquartered MTN reported headline earnings per share of 645 cents in the six months to June 30, compared to a headline loss of 256 cents a year earlier.
Earnings before interest, tax, depreciation and amortization (EBITDA) margins expanded by 7.1 percentage point to 44.2%, driving EBITDA growth of 42.3% in constant currency to 46.7 billion rand ($2.65 billion).
Group service revenue grew by 23.2% to 105.1 billion rand as data and fintech revenues increased by 36.5% and 37.3%, respectively.
The Nigerian naira, which had decimated its largest unit’s profit in the previous year, exhibited greater stability against the U.S. dollar in the first half. Ghana’s cedi, meanwhile, strengthened year-to-date against the rand and the U.S. dollar, Group CEO Ralph Mupita said.
The approval of price adjustments in Nigeria, which were phased in during the reporting period, largely benefiting the second quarter, boosted MTN Nigeria and the group’s service revenue growth.
MTN South Africa continued to navigate competitive pressures in its prepaid segment and reported service revenue growth of 2.3%.
The operator also raised its medium-term guidance for group service revenue growth to a percentage in at least the high-teens from at least the mid-teens.
($1 = 17.6117 rand)
(Reporting by Nqobile Dludla; Editing by Tom Hogue and Joe Bavier)
